SUZLON FIBRE 2022-23 Annual Report Analysis

Wed, 7 Jun

SUZLON FIBRE has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

SUZLON FIBRE Income Statement Analysis

• Operating income during the year fell 74.8% on a year-on-year (YoY) basis.
• The company's operating profit was by NA YoY during the fiscal. Operating profit margins witnessed a growth and stood at 15.2% in FY23 as against 75.2% in FY22.
• Depreciation charges decreased by 26.7% and finance costs decreased by 75.0% YoY, respectively.
• Other income declined by 15.5% YoY.
• Net profit for the year declined by NA YoY.
• Net profit margins during the year declined from 75.0% in FY22 to 14.7% in FY23.

SUZLON FIBRE Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	33	8	-74.8%
Other income	Rs m	1	0	-15.5%
Total Revenues	Rs m	33	9	-73.7%
Gross profit	Rs m	25	-1	NA
Depreciation	Rs m	1	0	-26.7%
Interest	Rs m	0	0	-75.0%
Profit before tax	Rs m	24	-1	NA
Tax	Rs m	0	0	0.0
Profit after tax	Rs m	24	-1	NA
Gross profit margin	%	75.2	-15.2
Effective tax rate	%	0.0	0.0
Net profit margin	%	75.0	-14.7

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SUZLON FIBRE Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 125 million as compared to Rs 147 million in FY22, thereby witnessing an decrease of -15.0%.
• Current assets fell 46% and stood at Rs 26 million, while fixed assets fell 33% and stood at Rs 3 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 29 million as against Rs 52 million during FY22, thereby witnessing a fall of 45%.

SUZLON FIBRE Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	-95	-96	NA
Current Liabilities	Rs m	147	125	-15.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	52	29	-44.8
Current assets	Rs m	48	26	-45.8
Fixed Assets	Rs m	4	3	-33.1
Total Assets	Rs m	52	29	-44.8

SUZLON FIBRE Cash Flow Statement Analysis

• SUZLON FIBRE's cash flow from operating activities (CFO) during FY23 stood at Rs 34 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 1 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -29 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 7 million from the Rs 0 million net cash flows seen during FY22.

SUZLON FIBRE Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	-31	34	-
Cash Flow from Investing Activities	Rs m	29	1	-95.4%
Cash Flow from Financing Activities	Rs m	3	-29	-
Net Cash Flow	Rs m	0	7	0.0%

Current Valuations for SUZLON FIBRE

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs -0.1, an decline from the EPS of Rs 1.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 5.0, stands at -62.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at -0.8 times, while the price to sales ratio stands at 9.2 times.
• The company's price to cash flow (P/CF) ratio stood at -134.9 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	2.1	0.5
TTM Earnings per share	Rs	1.6	-0.1
Diluted earnings per share	Rs	1.6	-0.1
Price to Cash Flow	x	2.0	-134.9
TTM P/E ratio	x	1.8	-62.8
Price / Book Value ratio	x	-0.5	-1.1
Market Cap	Rs m	49	104
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for SUZLON FIBRE

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.2x during FY23, from 0.3x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at -120.0x during FY23, from 613.0x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 1.3% during FY23, from -25.9% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 1.3% during FY23, from -25.9% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at -4.2% during FY23, from 46.9% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	0.3	0.2
Debtors’ Days	Days	4,052	370
Interest coverage	x	613.0	-120.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	46.9	-4.2
Return on equity	%	-25.9	1.3
Return on capital employed	%	-25.9	1.3

To see how SUZLON FIBRE has performed over the last 5 years, please visit here.

SUZLON FIBRE Share Price Performance

Over the last one year, SUZLON FIBRE share price has moved up from Rs 2.7 to Rs 5.0, registering a gain of Rs 2.3 or around 86.5%.

Overall, the S&P BSE SENSEX is up 12.9% over the year.

(To know more, check out historical annual results for SUZLON FIBRE and quarterly results for SUZLON FIBRE)